Figure 1: State variations in relative share of SHGs (measured by standard deviation)

In Figure 1, the states are grouped using the standard deviation of relative share of SHGs. In March 2001 (Fig. 1a), Andhra Pradesh was ranked first, with more than three units of standard deviation above the mean. Tamil Nadu, Himachal Pradesh, Puducherry and Karnataka formed the second leading group, which had a standard deviation above the mean, i.e., with nineteen, sixteen, twelve and nine households participating in SHGs for every 1,000 households respectively. The rest of the states had one unit of standard deviation below the mean and formed the weakest states in the process of microfinanciarization. Uttar Pradesh’s low percentage of SHG members out of total households might be a result of its large population base. In fact, its absolute size of SHGs was ranked fifth.

Five years later, in March 2006 (Fig. 1b), Andhra Pradesh had further consolidated its role as the leading state in the size of the SHG movement, measuring more than three standard deviations above the mean, i.e., 279 households participating in SHGs for every 1,000 households. Orissa, Puducherry, Tamil Nadu and Karnataka formed the second leading group, with more than one standard deviation above the mean. Himachal Pradesh, Kerala, Assam, Rajasthan, West Bengal and Maharashtra formed an intermediate group with ratios within one standard deviation of the mean, with ninety-four, eighty-five, eighty-two, sixty-five, sixty-one and fifty-six households participating in SHGs for every 1,000 households respectively. The other states had one unit of standard deviation below the mean. In Uttaranchal and Jharkhand there were less than thirty-two households participating in SHGs for every 1,000. In Jammu and Kashmir, Haryana, Punjab and Arunachal Pradesh there were less than ten households participating in SHGs for every 1,000 of the total households.